Am I responsible for repaying a debt if I did not agree to it in the first place?
A payday loan company deposited $250 into my overdrawn bank account in 2009. I didn't agree to the terms of the loan (never signed the paperwork finalizing it or spoke with the rep prior to the deposit authorizing it). Because the account was overdrawn I couldn't return the funds and this company began deducting $75 every 2 weeks. I spoke to my father and we attempted numerous times to make arrangements with the company to pay this just to get rid of it and they refused. They turned me over to collections for $505.47. Do I really owe this as I never agreed to the contract?
It depends on the circumstances. That is, if you did not agree to the loan or authorize, while you would need to return the original $250 (it's not yours and you may not keep it simply because it was put in error in your account), you would not be responsible for other charges.
However, if you requested the loan and it can be shown that you requested the loan, then even if you did not sign the final contract, you may be responsible for the loan and other charges growing out of it. For example, if you met with a loan representative, gave him or her your bank account information, and told them that you definitely wanted the loan and asked them to expedite it, that may be enough to hold you accountable for it, even if you did not ratify the paperwork after the fact.
The situation therefore will turn on the exact facts.